The Residency Leased Former University Buildings
Startup entrepreneurs can now utilize converted San Francisco properties for housing and coworking.
Updated on Oct. 10, 2026 in Internships
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Between 2024 and 2026, The Residency secured leases for three San Francisco properties previously caught in a $58 million municipal settlement. The program provides housing and workspace for cohorts of startup founders.
Why it matters
The program offers an alternative to college for founders by centralizing resources in properties formerly tied to Academy of Art University's regulatory disputes. This shift reflects a move to repurpose academic infrastructure for commercial startup development.
The Academy of Art University settled a 2016 city lawsuit for $58 million, agreeing to upgrade and permit 34 properties. The Residency now hosts 20 entrepreneurs per location across four sites, with monthly costs starting at $2,000 or 2% equity.
The players
The Residency
An organization operating startup coworking and housing spaces for entrepreneurs and academics.
Academy of Art University
A private art school with a significant real estate portfolio in San Francisco.
The details
The Residency occupies sites at 1916 Octavia St., 2209 Van Ness Ave., and 1153 Bush St. These facilities provide integrated housing and coworking, with tenants participating in a demo day during their ninth week. The residency cohorts operate three times per year, focusing on providing an environment for founders to concentrate on their work.
Timeline
The city initiated a lawsuit against the university in 2016.
The Residency leased the properties between 2024 and 2026.
The Commodore Hotel underwent a rebrand to Superhero Hotel in 2025.
Market Landscape
This activity follows the pattern set by the 2016 San Francisco settlement regarding illegal building conversions. It marks a transition of those previously contested assets into active, permitted use for modern startup operations.
Operators looking at similar real estate arrangements should prioritize verification of building permits and zoning compliance. Reviewing the historical litigation status of any commercial property is essential before entering long-term leases.
The takeaway
Repurposing real estate tied to prior municipal enforcement requires rigorous due diligence on current permitting compliance. Check the public status of any property involving former educational assets before signing a lease agreement.
Further reading
Find more operational insights regarding founder programs in the Internships section.
Source note: This article includes information reported by The San Francisco Standard.
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Should cities allow commercial startup residency programs to occupy older residential buildings in your area?
